RNS Number : 4450H
Quarto Group Inc
03 August 2021
 

The Quarto Group, Inc.

(the "Company", "Quarto", "Group")

 

Half-Year Results for the Six Months Ended 30 June 2021

 

The Quarto Group Inc. (LSE: QRT), the leading global illustrated book publisher, announces its unaudited half-year results for the six months ended 30 June 2021.

 

Results ($m)

H1 2021

H1 2020

Group Revenue

56.9

46.9

Adjusted1 Group Operating Profit/Loss

4.0

(1.8)

Group Operating Profit/Loss

4.0

(2.5)

Adjusted1 Profit/Loss before Tax

3.1

(3.3)

Profit/Loss before Tax

3.0

(4.0)

Profit/Loss after Tax

2.1

(3.0)

Net Debt2

16.4

37.4

 

1.     Adjusted measures are stated before amortization of acquired intangibles and exceptional items.

2.     The June 2020 figure has been restated to include Accrued Interest of $759k.

 

Headlines

•     Revenue up 21% at $56.9m against 2020.

•     Operating profit of $4m up from a loss of $1.8m, benefiting from the cost reduction program in 2018 and continued through 2020.

•     Net debt reduced in last 12 months by $21m (56%) to $16.4m driven by the cost reduction program, improved trading, dynamic inventory management and reduced finance costs.

 

•     Commenting on the results, Chief Executive, C.K. Lau said:

 

"This is an encouraging set of results following a year of challenge due to the Covid 19 pandemic. Revenue is 21% up year on year against a weak comparative in 2020. This has delivered an operating profit of $4m and net debt has reduced significantly during the period in what is seasonally our weak half of the year.

We are now focused on the critical second half as we expect the trading environment to be particularly challenging, especially with the volatility in freight, regarding capacity issues and freight costs. That said, we have the right plans in place to capture all possible opportunities and ensure a satisfactory year-end.

The Board remains focused on continuing its efforts to keep costs under control, drive sales, whilst maintaining the debt reduction and defining further growth strategies for 2022 and beyond."

- ENDS -

 

 

 

 

 

The Legal Identifier of the Company is 549300BJ2WPX3QUATW58.

 

For further information, please contact:

 

The Quarto Group Inc.                                   +44 (0)20 7700 6700

 

Daniel Logan, Group Finance Director

Michael Clarke, Company Secretary

 

About The Quarto Group

 

The Quarto Group (LSE: QRT) creates a wide variety of books and intellectual property products, with a mission to inspire life's experiences.  Produced in many formats for adults, children and the whole family, our products are visually appealing, information rich and stimulating.

 

The Group encompasses a diverse portfolio of imprints and businesses that are creatively independent and expert in developing long-lasting content across specific niches of interest.

 

Quarto sells and distributes its products globally in over 50 countries and 40 languages, through a variety of sales channels, partnerships and routes to market.

 

Quarto employs c.300 talented people in the US and the UK.  The group was founded in London in 1976. It is domiciled in the US and listed on the London Stock Exchange.

 

For more information, visit quarto.com or follow us on Twitter at @TheQuartoGroup.

 

 

 

 

CHIEF EXECUTIVE'S STATEMENT

 

 

SUMMARY

 

Trading was encouraging for the first six months of 2021.  Revenue was up 21% year on year at $56.9m against a weak comparative because of COVID 19 (H1 2020: $46.9m). Revenue was up 1% against 2019 ($56.4m).

 

Our Adult imprints performed strongly, with revenues up 24% year on year, and 3% ahead of 2019. Revenues from Children imprints was up 16% year on year, however against 2019, revenue was 4% down, with the US in particular seeing revenue decline. Gross profit margin was ahead of prior year at 31.8% (H1 2020: 22.7%) driven by a reduction in pre-publication amortization, by comparison, gross margin for H1 2019 was 21.5%.

 

The increased revenues and substantial benefits from the cost reduction program implemented in 2018 and which continued through 2020, has resulted in an adjusted group operating profit of $4.0m (H1 2020: loss of $1.8m). The adjusted profit before tax was $3.0m (H1 2020: loss of $3.3m).

 

Both our US and UK reporting segments improved their trading performance year on year, resulting in a significant improvement in the Group's adjusted operating result, as shown in the table below.

 

Net debt at 30 June 2021 was $16.4m (H1 2020: $37.4m*) a decrease of $21m over the twelve-month period and a reduction of $3.4m in the six month period.  *See note 7.

 

This strong cash generation has been driven by the cost reduction program, improved trading, dynamic inventory management and reduced finance costs.

 

The book trade market in the first six months of 2021 proved to be resilient, recovering from the setback of 2020 and trading ahead of 2019, however the co-edition market is flat year on year, with the impact of COVID being felt.

 

OPERATING REVIEW

 

Revenue ($m)

H1 2021

H1 2020

H1 2019

United States

36.3

29.2

36.7

United Kingdom

7.9

6.3

7.6

Rest of the World

6.6

5.1

5.0

Europe

6.1

6.3

7.1

Total Revenue

56.9

46.9

56.4

 

 

 

 

Adjusted Operating Profit / (Loss) ($m)

H1 2021

H1 2020

H1 2019

US Publishing

3.8

(0.4)

1.3

UK Publishing

1.0

(0.6)

(1.5)

Group overhead

(0.8)

(0.8)

(0.7)

Total adjusted operating profit / (loss)

4.0

(1.8)

(0.9)

 

Note: Revenue is shown by destination; adjusted operating profit / (loss) is shown by segment.

 

Whilst the number of published titles is in line with prior year, as a result of the actions taken during the pandemic, the Group's revenue increased year on year, driven by backlist sales and the re-opening of bricks and mortar bookstores.

 

UK-based Frances Lincoln Children's Books imprint continues to drive forward, with the Little People, Big Dreams series continuing to be a highlight, with over 4.6 million copies sold in the English language to date. We have expanded the list to include inspirational role models, such as RuPaul, David Attenborough and Captain Tom. US-based SmartLab continues to perform, with sales of Squishy Human Body selling over 112k units.

 

Revenues from Adult imprints were up across all imprints. In the US, our Beverly-based Adult imprints, especially Fair Winds Press and Cool Spring Press, continue to perform strongly led by our Gardening and Cookery titles.

 

Co-edition sales are in line with prior year both in English and foreign language, however this is a drop on 2019, as our publishing partners eased back on H1 2021 acquisitions. We are starting to see these sales pick up; however, we are expecting this to be a challenging market.

 

We have seen new opportunities in custom publishing driving revenue growth, and we expect this to become a larger part of our business-to-business revenue in the coming years.

 

International English language sales are up year on year, driven by Australia and Canada.

 

We continue to see a reduction in our financing costs, as we drive down the Group's net debt.

 

OUTLOOK

 

As we move into H2 2021, and as the global economy continues to unlock, we expect to see online sales return to more normal volumes with sales from traditional books stores building, albeit from a lower base. Business to business sales are starting to show signs of green shoots, in particular through the custom channel.

 

One area of concern is the volatility in freight, with capacity issues and freight costs increasing 3 to 4-fold since the turn of the year. We are also seeing pressure on print prices. We continue to look to mitigate these costs by using local printer suppliers and reviewing our inventory policy to ensure we print in the most efficient quantities. We expect this pressure on print and freight to increase our costs significantly.

 

That said, the Group has the right plans in place to capture all possible opportunities and deliver a satisfactory second half. The Board remains focused on continuing its efforts to keep costs under control, drive sales, whilst maintaining the debt reduction and defining further growth strategies for 2022 and beyond.

 

On behalf of the Board, I would like to thank all our staff, readers, customers, suppliers and shareholders, across the world, for their continued commitment and support.

 

C.K. Lau

Chief Executive Officer

 

 

THE QUARTO GROUP, INC.

Condensed Consolidated Income Statement

For the six months ended 30 June 2021

 

Note

Six months to

30 June 2021

Unaudited

 

$'000

Six months to

30 June 2020

Unaudited

 

$'000

Year ended

31 December 2020

Audited

 

$'000

 

 

 

 

 

Continuing operations

 

 

 

 

Revenue

3

56,864

46,865

126,883

Cost of sales

 

(38,775)

(36,232)

(89,298)

 

 

 

 

 

Gross profit

 

18,089

10,633

37,585

 

 

 

 

 

Distribution costs

 

(3,562)

(2,937)

(7,132)

Impairment of financial assets

 

(689)

(696)

(1,571)

Administrative expenses

 

(9,858)

(8,753)

(18,264)

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss) before amortisation of acquired intangibles and exceptional items

 

3,980

(1,753)

10,618

 

 

 

 

 

Amortisation of acquired intangibles

 

(7)

(323)

(890)

Exceptional items

4

-

(421)

(446)

 

 

 

 

 

 

 

 

 

 

Operating profit/(loss)

3

3,973

(2,497)

9,282

 

 

 

 

 

Finance costs

 

(929)

(1,506)

(2,693)

 

 

 

 

 

Profit/(loss) before tax

 

3,044

(4,003)

6,589

 

 

 

 

 

Taxation

5

(895)

1,000

(2,020)

 

 

 

 

 

 

 

 

 

 

Profit/(loss) for the period

 

2,149

(3,003)

4,569

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

Owners of the parent

 

2,149

(3,003)

4,569

 

 

 

 

 

Earnings/(loss) per share (cents)

 

 

 

 

 

 

 

 

 

From continuing operations

 

 

 

 

Basic

6

5.3

(8.1)

11.7

Diluted

6

5.3

(8.1)

11.6

 

 

 

 

 

 

 

 

 

 

 

 

 

THE QUARTO GROUP, INC.

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 30 June 2021

 

Six months to

30 June 2021

Unaudited

 

$'000

Six months to

30 June 2020

Unaudited

 

$'000

Year ended

31 December 2020

Audited

 

$'000

 

 

 

 

Profit/(loss) for the period

2,149

(3,003)

4,569

 

 

 

 

Other comprehensive income which may be reclassified to profit or (loss)

 

 

 

Foreign exchange translation differences

255

(1,922)

1,087

Tax relating to items that may be reclassified to profit or loss

-

-

54

 

 

 

 

Total comprehensive income/(expense) for the period

2,404

(4,925)

5,710

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

Owners of the parent

2,404

(4,925)

5,710

 

 

 

 

THE QUARTO GROUP, INC.

Condensed Consolidated Balance Sheet

At 30 June 2021

Note

30 June 2021

Unaudited

 

 

30 June 2020

Unaudited

*Restated

 

31 December 2020

Audited

 

 

 

 

$'000

$'000

$'000

Non-current assets

 

 

 

 

Goodwill

 

19,429

18,765

19,381

Other intangible assets

 

101

834

159

Property, plant and equipment

 

6,112

9,503

6,818

Intangible assets: Pre-publication costs

 

39,958

44,335

40,913

Deferred tax assets

 

3,604

3,331

3,604

Total non-current assets

 

69,204

76,768

70,875

 

 

 

 

 

Current assets

 

 

 

 

Inventories

 

17,366

16,813

15,465

Trade and other receivables

 

34,473

35,506

44,519

Cash and cash equivalents

7

19,044

11,547

22,079

 

 

 

 

 

Total current assets

 

70,883

63,866

82,063

 

 

 

 

 

Total assets

 

140,087

140,634

152,938

 

 

 

 

 

Current liabilities

 

 

 

 

Short term borrowings

7

(3,905)

(5,000)

(41,819)

Trade and other payables 

 

(41,992)

(40,723)

(50,064)

Lease liabilities

 

(1,426)

(1,839)

(1,968)

Tax payable

 

(4,117)

(1,718)

(4,355)

 

 

 

 

 

Total current liabilities

 

(51,440)

(49,280)

(98,206)

 

 

 

 

 

Non-current liabilities

 

 

 

 

Medium and long-term borrowings

7

(31,498)

(43,940)

-

Deferred tax liabilities

 

(6,347)

(6,808)

(6,323)

Tax payable

 

(386)

(441)

(386)

Lease liabilities

 

(4,289)

(6,995)

(4,310)

 

 

 

 

 

Total non-current liabilities

 

(42,520)

(58,184)

(11,019)

 

 

 

 

 

Total liabilities

 

(93,960)

(107,464)

(109,225)

 

 

 

 

 

Net assets

 

46,127

33,170

43,713

 

 

 

 

 

Equity

 

 

 

 

Share capital

 

4,089

4,089

4,089

Paid in surplus

 

48,701

48,701

48,701

Retained earnings and other reserves

 

(6,663)

(19,620)

(9,077)

Total equity

 

46,127

33,170

43,713

 

*See note 7

 

 

THE QUARTO GROUP, INC.

 

Condensed Consolidated Statement of Changes in Equity for the six months ended 30 June 2021

 

 

Share capital

Paid in surplus

             Translation
reserve

 Retained earnings

Equity attributable to owners of the parent

 

$000

$000

$000

$000

$000

 

 

 

 

 

 

Balance at 1 January 2020

2,045

33,764

(6,748)

(8,007)

21,054

 

 

 

 

 

 

Loss for the period

-

-

-

(3,003)

(3,003)

Foreign exchange translation differences

-

-

(1,922)

-

(1,922)

 

 

 

 

 

 

Total comprehensive (expense)/income for the period

-

-

(1,922)

(3,003)

(4,925)

 

 

 

 

 

 

Share based raised

2,044

16,307

-

-

18,351

Costs of raising share capital

-

(1,370)

-

-

(1,370)

Share based payment charge

-

-

-

60

60

Transactions with owners

2,044

14,937

-

60

17,041

 

 

 

 

 

 

 

 

Balance at 30 June 2020

4,089

48,701

(8,670)

(10,950)

33,170

 

 

 

 

 

 

Balance at 1 January 2021

4,089

48,701

(5,607)

(3,470)

43,713

 

 

 

 

 

 

Profit for the period

-

-

-

2,149

2,149

Foreign exchange translation differences

-

-

255

-

255

 

 

 

 

 

 

Total comprehensive income for the period

-

-

255

2,149

2,404

 

 

 

 

 

 

Share based payment charge

-

-

-

10

10

 

 

 

 

 

 

 

 

Balance at 30 June 2021

 

4,089

48,701

(5,352)

(1,311)

46,127

 

 

 

THE QUARTO GROUP, INC.

Condensed Consolidated Statement of Changes in Equity for the year ended 31 December 2020

 

 

Share capital

Paid in surplus

             Translation
reserve

 Retained earnings

Equity attributable to owners of the parent

 

$000

$000

$000

$000

$000

 

 

 

 

 

 

Balance at 1 January 2020

2,045

33,764

(6,748)

(8,007)

21,054

 

 

 

 

 

 

Profit for the year

-

-

-

4,569

4,569

Foreign exchange translation differences

-

-

1,087

-

1,087

Cash flow hedge: losses arising during the year

-

-

-

-

-

Tax relating to items that may be reclassified to profit or loss

-

-

54

-

54

Total comprehensive income for the year

-

 

 

 

 

 

 

Share based raised

2,044

16,307

-

-

18,351

Costs of raising share capital

-

(1,370)

-

-

(1,370)

Share based payment credit

-

-

-

(32)

(32)

Transactions with owners

2,044

14,937

-

(32)

16,949

 

 

 

 

 

 

Balance at 31 December 2020

4,089

48,701

(5,607)

(3,470)

43,713

 

 

 

 

 

 

 

 

 

THE QUARTO GROUP, INC.

Condensed Consolidated Cash Flow Statement

For the six months ended 30 June 2021

 

 

Six months to

30 June 2021

Unaudited

 

 

Six months to

30 June 2020

Unaudited

*Restated

Year ended

31 December 2020

Audited

 

 

 

 

$'000

$'000

$'000

 

 

 

 

 

Profit/(loss) for the period

 

2,149

(3,003)

4,569

Adjustments for:

 

 

 

 

Net finance costs

 

929

1,506

2,693

Depreciation of property, plant and equipment

 

766

1,062

2,160

Software amortization

 

51

123

231

Tax charge/(credit)

 

895

(1,000)

2,020

Profit on disposal of right-of-use assets

 

-

-

(35)

Share based payments

 

10

60

(32)

Amortisation and amounts written off acquired intangibles

 

7

323

890

Amortisation and amounts written off pre-publication costs

 

 

12,026

13,084

28,646

 

 

 

 

 

 

 

 

 

 

Operating cash flows before movements in working capital

 

16,833

12,155

41,142

(Increase)/decrease in inventories

 

(1,867)

2,204

4,023

Decrease in receivables

 

10,239

9,672

2,721

(Decrease) in payables

 

(7,371)

(16,349)

(9,205)

 

 

 

 

 

Cash generated by operations

 

17,834

7,682

38,681

 

 

 

 

 

Income taxes paid

 

(1,156)

(65)

(1,760)

 

 

 

 

 

Net cash from operating activities

 

16,678

7,617

36,921

 

 

 

 

 

Investing activities

 

 

 

 

Investment in pre-publication costs

 

(10,911)

(10,306)

(20,324)

Purchases of property, plant and equipment

 

(56)

(11)

(34)

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

(10,967)

(10,317)

(20,358)

 

 

 

 

 

Financing activities

 

 

 

 

Interest payments

 

(1,923)

(819)

(1,297)

New Share Capital

 

-

18,351

18,351

Cost of raising share capital

 

-

(1,370)

(1,370)

Lease payments

 

(712)

(954)

(1,995)

External loans repaid

 

(31,567)

(21,626)

(28,413)

External loans drawn

 

25,118

5,259

4,520

 

 

 

 

 

Net cash used in financing activities

 

(9,084)

(1,159)

(10,204)

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

(3,373)

(3,859)

6,359

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

22,079

15,621

15,621

 

 

 

 

 

Foreign currency exchange differences on cash and cash equivalents

 

338

(215)

99

 

 

 

 

 

Cash and cash equivalents at end of period

 

19,044

11,547

22,079

 

*See note 7

 

THE QUARTO GROUP, INC.

 

Notes to the condensed financial statements

 

1. Interim Statement

 

These interim consolidated financial statements are for the half year to 30 June 2021. They were approved by the board on 3 August 2021. These results are unaudited and have not been reviewed by the Group's auditor. The comparative figures for the six months to 30 June 2020 were unaudited and derived from the interim financial statements for that period.

 

The information for the year ended 31 December 2020 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor's report on those accounts was not qualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain statements under section 498 (2) or (3) of the Companies Act 2006.

 

Basis of preparation

These interim financial statements have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34, "Interim Financial Reporting".

 

The Group's forecast and projections, taking account of reasonably possible changes in trading performance, show that the Group will be able to operate well within the level of its current banking facilities. The Directors have therefore adopted a going concern basis in preparing the Interim Information.

 

2. Accounting policies

 

The accounting policies, significant judgements and key sources of estimation adopted in the preparation of this Interim Report are consistent with those applied by the Group in its consolidated financial statements for the year ended 31 December 2020.

 

 

 

 

THE QUARTO GROUP, INC.

Notes to the condensed financial statement

 

3. Segmental analysis

Six months to 30 June 2021

 

 US Publishing

 

UK Publishing

 

Total

 

$000

$000

$000

Revenue

32,085

24,779

56,864

 

 

 

 

Operating profit before amortisation of acquired intangibles and exceptional items

3,792

1,029

4,821

Amortisation of acquired intangibles

(7)

-

(7)

Segment result

3,785

1,029

4,814

Unallocated corporate expenses

 

 

(841)

Exceptional items

 

 

-

Operating profit

 

 

3,973

Finance costs

 

 

(929)

Profit before tax

 

 

3,044

Tax charge

 

 

(895)

Profit after tax

 

 

2,149

 

Six months to 30 June 2020

US Publishing

UK Publishing

Total

 

$000

$000

$000

Revenue

24,989

21,876

46,865

 

 

 

 

Operating loss before amortisation of acquired intangibles and exceptional items

(439)

(551)

(990)

Amortisation of acquired intangibles

(285)

(38)

(323)

Segment result

(724)

(589)

(1,313)

Unallocated corporate expenses

 

 

(763)

Exceptional items

 

 

(421)

Operating loss

 

 

(2,497)

Finance costs

 

 

(1,506)

Loss before tax

 

 

(4,003)

Tax credit

 

 

1,000

Loss after tax

 

 

(3,003)

 

Year ended 31 December 2020

US Publishing

UK Publishing

Total

 

$000

$000

$000

Revenue

63,137

63,746

126,883

 

 

 

 

Operating profit before amortisation of acquired intangibles and exceptional items

3,249

8,360

11,609

Amortisation of acquired intangibles

(851)

(39)

(890)

Segment result

2,398

8,321

10,719

Unallocated corporate expenses

 

 

(991)

Corporate exceptional items

 

 

(446)

Operating profit

 

 

9,282

Finance costs

 

 

(2,693)

Profit before tax

 

 

6,589

Tax

 

 

(2,020)

Profit after tax

 

 

4,569

 

THE QUARTO GROUP, INC.

Notes to the condensed financial statements

 

3.   Segmental analysis (continued)

 

Geographical revenue

 

 

 

The Group generates its revenue in the following geographical areas:

 

 

 

 

 

 

 

Six months to

30 June 2021

Unaudited

$'000

Six months to

30 June 2020

Unaudited

$'000

Year ended

31 December 2020

Audited

$'000

United States

36,315

28,713

76,061

United Kingdom

7,851

6,349

18,250

Europe

6,611

6,233

17,446

Rest of the World

6,087

5,570

15,126

Total

56,864

46,865

126,883

 

 

 

4.   Exceptional items

 

Six months to

30 June 2021

Unaudited

$'000

Six months to

30 June 2020

Unaudited

$'000

Year ended

31 December 2020

Audited

$'000

Exceptional items comprised:

 

 

 

Restructuring costs

-

228

251

Refinancing costs

-

193

195

 

 

 

 

Total

-

421

446

 

5.   Taxation

 

Taxation for the six months to 30 June 2021 is based on the Group estimated underlying tax rate for the year.  

 

 

 

THE QUARTO GROUP, INC.

Notes to the condensed financial statements

 

6.   Earnings per share

 

 

Six months to

30 June 2021

Unaudited

 

$'000

Six months to

30 June 2020

Unaudited

 

$'000

Year ended

31 December 2020

Audited

 

$'000

From continuing operations

 

 

 

Profit/(loss) for the purposes of basic and diluted earnings per share, being net profit/(loss) attributable to owners of the parent

2,149

(3,003)

4,569

Amortisation of acquired intangibles (net of tax)

5

242

626

Exceptional items (net of tax)

-

316

349

Earnings/(loss) for the purposes of adjusted earnings per share

2,154

(2,445)

5,544

 

 

 

 

 

Number

Number

Number

Weighted average number of shares

40,889,000

37,069,606

39,185,388

Dilutive outstanding options awards

43,482

157,659

123,037

Diluted weighted average number of shares

40,932,482

37,227,265

39,308,425

 

 

 

 

 

 

 

 

Earnings/(loss) per share (cents)

Cents

Cents

Cents

From continuing operations

 

 

 

Basic

5.3

(8.1)

11.7

Diluted

5.3

(8.1)

11.6

 

 

 

 

Adjusted basic

5.3

(6.6)

14.1

Adjusted diluted

5.3

(6.6)

14.1

 

 

 

 

7.   Net debt

 

 

30 June 2021

Unaudited

 

$'000

30 June 2020

Unaudited

*Restated

$'000

31 December 20

Audited

 

$'000

Net debt comprised:

 

 

 

 

Cash and cash equivalents

19,044

11,547

22,079

Short term borrowings

(3,905)

(5,000)

(41,819)

Medium and long-term borrowings

(31,498)

(43,940)

-

Net debt

(16,359)

(37,393)

(19,740)

 

* The June 2020 figure has been restated to include Accrued Interest of $759k moved from other payables.

 

At 30 June 2021, the Group has a $18m syndicated facility, comprising a term loan, revolving credit facility and overdraft. These facilities expire on 16 July 2024 and are subject to covenants, which were all met in the current period. In addition, the Group has $23.0m of sub-ordinated loans with related parties, repayable on 31 August 2024 and a loan of $2.4m relating to government support given under the Coronavirus Aid, Relief and Economic Security Act of the USA.

 

8.   Principal risks and uncertainties facing the Group

 

There have been no changes to the principal risks and uncertainties facing the Group since the year-end. These are disclosed on pages 19 to 21 of the 2020 Annual Report.

 

 

 

THE QUARTO GROUP, INC.

Notes to the condensed financial statements

 

 

9.   Financial instruments

 

There are no material differences between the fair value of financial instruments and their carrying value.

 

10. Management Statement

 

This Interim Management Report (IMR) has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed.  The IMR should not be relied on by any other party or for any other purpose.

 

The IMR contains certain forward-looking statements.  These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.

 

Responsibility statement

We confirm that to the best of our knowledge:

a)    the condensed set of financial statements, which has been prepared in accordance with IAS 34 "Interim Financial Reporting", gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4R;

b)    the interim management report includes a fair review of the information required by DTR 4.27R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

c)     the interim management report includes a fair review of the information required by DTR 4.28R (disclosure of related party transactions and changes therein).

 

By the order of the board

 

 

 

Chuk Kin Lau

Chief Executive Officer

Andrew Cumming

Chairman

 

 

3 August 2021

3 August 2021

 

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